Mathew Ingram identifies the elephant in the living room for any streaming music service:

Although Rhapsody has a free, ad-supported version of its subscription service, the main offering is a paid streaming model, and both the free and paid services are of course all wrapped up in some tasty DRM. But the biggest problem with Rhapsody — and with Yahoo Music — is simple: Most people don’t want to stream their music like a radio station. They want to download it and do whatever they want to with it. Period.

This is why the current wet dream of the labels is ultimately doomed - Ingram is totally correct here, and they are chasing something no one wants.